Cost of a car factory no concern for tech giants

Contract manufacturers might offer a means for tech giants to expand into vehicle production. Whether they will is another matter. By Freddie Holmes

Given that modern vehicles have become increasingly reliant on software and battery technology, there have been suggestions that the next generation of vehicles could be produced by familiar names from Big Tech.

Special report: Will tech giants ever become automakers?

Having already branched out to find new sources of growth, corporations such as Alphabet, Amazon and Apple appear the most likely. There is also an old adage to consider: if you aren’t growing, you’re dying. But does that justify a move into unknown territory such as vehicle manufacturing?

Making vehicles at a profit

Setting up a car factory takes time, but it can be fairly straightforward with the support of an experienced team of experts. Important elements such as the paint shop—widely seen as one of the most important facilities in a vehicle factory—can also be sold to a third-party operator, which…